The second issue of the Btp Value, the government bond dedicated to retail with a duration of five years and “step-up” coupons”, i.e. growing after three years.
By adding 1,5 billion subscriptions today, the last day of collection, to the 15,6 billion recorded since the start of the offer last Monday, the Treasury has totaled 17,2 billion. A result not far from the 18,191 billion that set a record in the first edition, that of June. Considering the over 640.000 registered contracts, the medium cut investment was just under 27.000 euros.
Giorgetti: “Seriousness rewarded. Our choices will take this result into account"
Today's is the third BTP aimed at retail investors in 2023, after the 10 billion of Btp Italia in March and, indeed, the 18 billion of the first Btp Valore. In both 2021 and 2022, however, Italy had dedicated only two issues to retail.
The strategy of the Ministry of Economy is clear, to try to move part of its gigantic debt increasingly in the hands of small savers. Bankitalia records that this share is now around 11,6%, up compared to 7% in the summer of 2022. Precisely the support of families, who are more "calm" than large investors, and the confidence of foreign investors these are the two ingredients on which the Mef will focus above all next year, when on the one hand they will be there expiring around 100 billion in securities will be an indispensable combination, on the other hand the reinvestment of the ECB, scheduled, for around 40 billion in Italian securities.
“Seriousness, prudence and responsibility have been rewarded by savers”, commented the Minister of Economy Giancarlo Giorgetti. “Our future choices, even the immediate ones, will have to be respectful of this result which today pleases us and we celebrate,” he added.
Initial returns confirmed: 4,10% up to the third year, 4,50% in the fifth
The Mef had set before the issue minimum returns: 4,10% for the 1st, 2nd and 3rd year; 4,50% for the 4th and 5th year. The numbers were confirmed at the close of the operation. Valore also foresees the second issue of BTPs coupons nominal paid quarterly basis and calculated on the basis of a pre-established rate for the first 3 years, which increases for the following 2 years of life of the security (this is what is called the mechanism step-up). As happened with the June issue, the extra final loyalty reward it is a bonus paid exclusively to those who purchase the Valore BTPs during the placement period and hold them until maturity (with the new issue it is 5 years). For example, if you purchased BTPs for a thousand euros (which is the minimum denomination) the final premium of 0,5% will be 5 euros.
The usual preferential taxation for government bonds equal to 12,5% on coupons and loyalty bonus, and the exemption from inheritance taxes, apply to the BTP Valore. Subscribers, as always, will be able to sell all or part of the security before its maturity, without constraints and at market conditions. The subscribed capital is guaranteed upon maturity.
